A

n_______________i
sana
sse
tso
rit
emt
hati
spu
rch
ase
dwi
t
hth
eho
pet
hat
itwi
l
lge
ner
atei
nco
me.

A
.In
ves
tme
nt

B
.Mu
tua
lfu
nd

C.
Por
tf
ol
io

D.
Sha
res

A
NSWE
R:A

A_______________i
sap
rof
ess
ion
all
y-
man
age
din
comes
che
me.

A
.In
ves
tme
nt

B
.Mu
tua
lfu
nd

C.
Por
tf
ol
io

D.
Sha
res

A
NSWE
R:B

Mo
ret
he_______________ mo
rei
sth
epr
ofi
t
.

A
.Re
tur
n

B
.In
come

C.
Liq
uid
it
y

D.
Ris
k

A
NSWE
R:D

_______________me
ansma
rke
tab
il
it
yof
ani
nve
stme
nt.

A
.Li
qui
di
ty

B
.Re
tur
n

C.
Inc
ome

D.
Ris
k

A
NSWE
R:A

_______________r
efe
rst
oth
elo
sso
fpr
in
cip
ala
mou
nto
fani
nve
stme
nt.

A
.In
come

B
.Ri
sk
C.
Liq
uid
it
y

D.
Por
tf
ol
io

A
NSWE
R:B

_______________r
efe
rst
oth
epr
ote
cti
ono
fin
ves
torp
ri
nci
pal
amo
unt
ande
xpe
cte
dra
teo
fre
tur
n.

A
.Ri
sk

B
.Ma
rke
tab
il
it
y

C.
Saf
et
y

D.
Rat
eof
Ret
urn

A
NSWE
R:C

_______________r
efe
rst
oani
nve
stme
ntr
ead
ytoc
onv
erti
nt
oca
shp
osi
t
ion
.

A
.Po
rtf
ol
io

B
.In
ves
tme
nt

C.
Mar
ket
abi
l
it
y

D.
Liq
uid
it
y

A
NSWE
R:D

_______________r
is
kist
her
is
kof
los
sbe
cau
sey
ourmo
neyi
sco
nce
ntr
ate
din1i
nve
stme
nto
rty
peo
f
i
nve
stme
nt.

A
.Mu
tua
lFu
nd

B
.Co
nce
ntr
ati
on

C.
Rei
nve
stme
nt

D.
Por
tf
ol
io

A
NSWE
R:B

______________r
is
kap
pli
est
ode
bti
nve
stme
ntss
ucha
sbo
nds
.

A
.De
bit
&Cr
edi
t

B
.De
bit

C.
Cre
dit

D.
Cre
dit&De
bit

A
NSWE
R:C
_______________r
is
kist
her
is
kof
los
sfr
omr
ei
nve
sti
ngp
ri
nci
pal
ori
nco
mea
tal
owe
rin
ter
estr
ate
.

A
.In
ves
tme
nt

B
.Mu
tua
lFu
nd

C.
Por
tf
ol
io

D.
Rei
nve
stme
nt

A
NSWE
R:D

_______________r
is
kist
her
is
kof
out
l
ivi
ngy
ours
avi
ngs
.

A
.Lo
nge
vit
y

B
.Co
nce
ntr
ati
on

C.
Rei
nve
stme
nt

D.
Por
tf
ol
ioE
val
uat
i
on

A
NSWE
R:A

_______________r
is
kist
her
is
kof
los
swh
eni
nve
sti
ngi
nfo
rei
gnc
oun
tri
es.

A
.Di
re
ct&I
ndi
re
ct

B
.Fo
rei
gni
nve
stme
nt

C.
Dir
ectI
nve
stme
nt

D.
Ind
ir
ect
Inv
est
men
t

A
NSWE
R:B

Hi
ghe
rri
sksi
sas
soc
iat
edwi
t
hgr
eat
erp
rob
abi
l
it
yof
hig
her______________.

A
.Ra
teo
fRe
tur
n

B
.Ri
sk

C.
Ret
urn

D.
Ris
k&R
etu
rn

A
NSWE
R:C

_______________ri
ski
ssp
eci
f
ict
obo
ndi
ss
uesa
ndr
efe
rst
oth
epo
ssi
bi
li
t
yth
atad
ebt
sec
uri
t
ywi
l
lbe
ca
ll
edpr
io
rtomat
uri
t
y.
A
.Be
ta

B
.Sh
are
s

C.
Bon
d

D.
Cal
l

A
NSWE
R:D

_______________r
is
kar
eas
soc
iat
edwi
t
hlo
wpo
ten
ti
alr
etu
rns
.

A
.Lo
w

B
.Hi
gh

C.
Med
ium

D.
Low&Hi
gh

A
NSWE
R:A

T
her
is
k-r
etu
rnt
rad
e-o
ffi
sani
mpo
rta
nte
leme
nto
f_______________t
heo
ry.

A
.Po
rtf
ol
io

B
.Mo
der
npo
rtf
ol
io

C.
Por
tf
ol
ioE
val
uat
i
on

D.
Por
tf
ol
ioA
nay
sis

A
NSWE
R:B

T
he_______________i
sar
esu
lto
fex
ter
nal
andu
nco
ntr
ol
la
blev
ari
abl
es.

A
.Un
sys
tema
ti
cri
sk

B
.Mo
der
nPo
rtf
ol
io

C.
Sys
tema
ti
cri
sk

D.
Por
tf
ol
io

A
NSWE
R:C

T
hesel
ect
i
ono f
the_______________p
ort
f
oli
ode
pen
dso
nth
ein
ves
tor
sri
skA
ver
si
ono
rco
nve
rse
lyo
n
h
isr
is
ktoler
ance.

A
.Ef
f
ici
ent

B
.Ef
f
ect
i
ve

C.
Con
cav
e
D.
Opt
i
mal

A
NSWE
R:D

Ma
rko
wit
zus
edt
het
ech
niq
ueo
fqu
adr
ati
cpr
ogr
ammi
ngt
oid
ent
i
fyt
he_______________p
ort
f
oli
os.

A
.Ef
f
ici
ent

B
.Ef
f
ect
i
ve

C.
Eva
lua
ti
on

D.
Fro
nti
er

A
NSWE
R:A

T
he_______________modeli
sinf
acta
ndove
rsi
mpl
i
fi
cat
i
on.
Ita
ssu
met
hat
sto
cksmo
vet
oge
the
ron
ly
b
eca
useo
facommonc
o-mo
veme
ntwit
hth
ema r
ket
.

A
.Mu
lt
iI
nde
x

B
.Si
ngl
eIn
dex

C.
Mar
kowi
t
zIn
dex

D.I
nde
xMo
del

A
NSWE
R:B

_______________mode
lsat
te
mptst
oide
nti
f
ya n
din
cor
por
atet
hes
eno
nma
rke
tore
xtr
a-ma
rke
tfa
cto
rs
t
hatc
aus
esecu
ri
ti
est
omov
etoge
theri
nt
othemode
l.

A
.Ma
rko
wit
zIn
dex

B
.Si
ngl
eIn
dex

C.
Mul
t
i-
in
dex

D.
Ind
exMo
del

A
NSWE
R:C

_______________i
sana
lt
ern
ati
vet
oth
esi
ngl
ein
dexmo
del
.

A
.Ma
rko
wit
zmo
del

B
.In
dexMo
del

C.
Sin
gleI
nde
xMo
del

D.
Mul
t
iIn
dexmo
del
A
NSWE
R:D

_______________mo
del
ismo
rec
omp
lexa
ndr
equ
ir
esmo
red
atae
sti
mat
esf
ori
t
sap
pli
cat
i
on.

A
.Mu
lt
iIn
dex

B
.Ma
rko
wit
zIn
dex

C.I
nde
x

D.
Sin
gleI
nde
x

A
NSWE
R:A

_______________ris
kisth
eri
skofi
nve
stme
ntsd
ecl
i
nin
ginv
alu
ebe
cau
seo
fec
ono
micd
eve
lop
men
tso
r
ot
here
ven
tst
hata
ff
ectt
heent
i
remar
ket
.

A
.In
ves
tme
nt

B
.Ma
rke
t

C.
Div
ers
if
ic
ati
on

D.
Ret
urn

A
NSWE
R:B

_______________r
is
kist
her
is
kof
los
sbe
cau
seo
fad
ropi
nth
ema
rke
tpr
ic
eof
sha
res
.

A
.Pr
efe
ren
ce

B
.De
ben
tur
es

C.
Equ
it
y

D.
Bon
ds

A
NSWE
R:C

Ag
ood_______________o
nani
nve
stme
nti
saf
i
rsta
ndt
hef
ore
mos
tco
ndi
t
ionf
ore
ff
ect
i
vei
nve
stme
nt.

A
.Ri
sk

B
.Lo
ss

C.
Rat
eof
ret
urn

D.
Pro
fi
t

A
NSWE
R:C
_______________me
ansac
omb
ina
ti
ono
ffi
nan
cia
las
set
san
dph
ysi
cal
ass
ets
.

A
.Di
ver
si
fi
cat
i
on

B
.Mu
tua
lFu
nd

C.
Por
tf
ol
io

D.
Inv
est
men
t

A
NSWE
R:C

P
ort
f
oli
o_______________isth
epr
oce
sso
fre
vie
win
gora
sse
ssi
ngt
hee
leme
ntso
fth
een
ti
rep
ort
f
oli
o
o
fsec
uri
ti
eso
rpr
odu
ctsi
nabu
sin
ess
.

A
.Ev
alu
ati
on

B
.Ri
sk

C.
Ret
urn

D.
Ana
lys
is

A
NSWE
R:D

Hi
ghe
r_______________i
sas
soc
iat
edwi
t
hgr
eat
erp
rob
abi
l
it
yof
hig
herr
etu
rn.

A
.Ri
sk

B
.Re
tur
n

C.
Pro
fi
t

D.
Los
s

A
NSWE
R:A

T
he_______________isane
ff
ortt
oac
hie
veab
ala
nceb
etwe
ent
hed
esi
ref
ort
hel
owe
stp
oss
ibl
ewi
t
h
a
ndt
hehi
ghe
stpo
ssi
bl
eret
urn
.

A
.Ri
sk

B
.Ri
skr
etu
rnt
rad
e-o
ff

C.
Ret
urn

D.
Ris
k&R
etu
rn

A
NSWE
R:B

A
nin
ves
tori
sin
ter
est
edo
nlyi
nth
e_______________p
ort
f
oli
os.

A
.Ef
f
ect
i
ve
B
.An
aly
sis

C.
Eff
i
cie
nt

D.
Eva
lua
ti
on

A
NSWE
R:C

_______________a
ssi
sti
nth
ese
lec
ti
ono
fth
emo
ste
ff
ic
ien
tbya
nal
ysi
ngv
ari
ousp
oss
ibl
epo
rtf
ol
io
sof
t
hegi
vense
cur
it
i
es.

A
.Si
ngl
eIn
dexMo
del

B
.Mu
lt
iI
nde
xMo
del

C.
Ind
exMo
del

D.
Mar
kowi
t
zmo
del

A
NSWE
R:D

A
ccor
di
n gt
oth
ecapi
t
al-
ass
etp
ri
ci
ngmode
l(CA
PM)as
ecu
ri
ty
'se
xpe
cte
d(r
equ
ir
ed)
ret
urni
seq
ual
tot
her
is
k
f
reer
atepl
usapr
emi
um:_______________

A
.Eq
ual
tot
hes
ecu
ri
ty
'sb
eta

B
.Ba
sedo
nth
eun
sys
tema
ti
cri
sko
fth
ese
cur
it
y.

C.
Bas
edo
nth
eto
tal
ri
skso
fth
ese
cur
it
y

D.
Bas
edo
nth
esy
ste
mat
i
cri
sko
fth
ese
cur
it
y

A
NSWE
R:D

T
her
is
k-f
rees
ecu
ri
tyh
asab
etae
qua
ltowh
il
eth
ema
rke
tpo
rtf
ol
io
'sb
etai
seq
ual
to:
_______________

A
.On
e;mo
ret
hano
ne

B
.On
e;l
esst
hano
ne

C.
Zer
o;o
ne

D.
Les
sth
anz
ero
;mo
ret
hanz
ero

A
NSWE
R:C

Car
ri
ehasa"c
ert
ai
nt
yequi
val
ent
"toar
is
kyga
mbl
e'
sex
pec
tedv
alu
eth
ati
sle
sst
hant
heg
amb
le'
sex
pec
ted
va
lue
.Ca
rri
eshows
:_______________

A
.ri
ska
ver
si
on

B
.ri
skp
ref
ere
nce

C.
ri
ski
ndi
f
fer
enc
e
D.
ast
ran
geo
utl
ooko
nli
f
e

A
NSWE
R:A

B
etai
sth
esl
opeo
f:_______________

A
.Th
ese
cur
it
yma
rke
tli
ne

B
.Th
eca
pit
alma
rke
tli
ne

C.
ACh
ara
cte
ri
st
ic
sli
ne

D.
theCA
PM

A
NSWE
R:C

Ame
asu
reso
f"r
is
ksp
eru
nito
fex
pec
tedr
etu
rn"
:_______________

A
.St
and
ardd
evi
at
io
n

B
.Co
eff
i
cie
nto
fva
ri
at
io
n

C.
Cor
rel
at
io
nco
eff
i
cie
nt

D.
Bet
a

A
NSWE
R:B
.

T
heg
rea
tert
heb
eta
,th
eof
thes
ecu
ri
tyi
nvo
lve
d:_______________

A
.Gr
eat
ert
heu
nav
oid
abl
eri
sk

B
.Gr
eat
ert
hea
voi
dab
ler
is
k

C.
Les
sth
eun
avo
ida
bler
is
k

D.
Les
sth
eav
oid
abl
eri
sk

A
NSWE
R:A

I
nca
pit
alas
setp
ri
ci
ngmo
de,
thec
ova
ri
anc
eb e
tweens
toc
kan
dma
rke
tisd
ivi
dedb
yva
ri
anc
eof
mar
ket
ret
urn
s
t
ocal
cul
at
e______________oft
hecompan
y.

A
.Me
anR
etu
rns

B
.Sa
lesT
urn
ove
r

C.
Var
ia
nce

D.
Bet
a

A
NSWE
R:D
Ap
ort
f
oli
oco
mpr
is
ess
eve
ral
_______________s
ecu
ri
ti
es.

A
.In
div
idu
al

B
.Do
ubl
e

C.
Mor
e

D.
Les
s

A
NSWE
R:A

R
ewa
rdt
osy
ste
mat
i
cri
skr
ati
oisa
ls
okn
owna
s_____me
asu
re.

A
.Sh
ape
's

B
.Tr
eyn
or'
s

C.
cap
it
al

D.
Jen
son
's

A
NSWE
R:B

_____________anal
ysi
sat
te
mptst
ome a
sur
esin
tri
ns
icv
alu
eof
ase
cur
it
ybye
xami
ni
ngr
el
at
ede
con
omi
c,
f
in
anci
ala
ndot
herq
ual
i
tat
i
veandqua
nti
t
ati
vef
act
ors
.

A
.Ec
ono
my

B
.In
dus
tr
y

C.
Comp
any

D.
Fun
dame
nta
l

A
NSWE
R:D

_______________me
anst
ran
sfe
rab
il
it
yors
al
eab
il
it
yof
ana
sse
t.

A
.Ma
rke
tab
il
it
y

B
.Li
qui
di
ty

C.
Inv
est
men
t

D.
Por
tf
ol
io

A
NSWE
R:A

_______________acti
vi
tyi
ncl
ude
sbuyi
ngandsel
l
in
gof
thef
i
nan
cia
las
set
s,p
hys
ic
ala
sse
tsa
nd
mar
ket
abl
eass
etsi
npr
ima
ryandsec
ondar
ymark
ets.

A
.Po
rtf
ol
io
B
.In
ves
tme
nt

C.
Sal
eab
il
it
y

D.
Mut
ual
Fun
d

A
NSWE
R:B

P
ort
fol
i
ostha
tli
ebel
owthe
. _______________a
res
ub-
opt
i
mal
bec
aus
eth
eyd
ono
tpr
ovi
dee
nou
gh
r
etu
rnfort
hele
vel
ofri
sk.

A
.Ef
f
ici
entF
ron
ti
er

B
.Ev
alu
ati
onF
ron
ti
er

C.
Ana
lys
isF
ron
ti
er

D.
Eff
ect
i
veF
ron
ti
er

A
NSWE
R:A

T
heeff
ic
ien
tFron
ti
eri
sasetof
_______________port
f
oli
ost
hatof
f
erst
heh
igh
est
exp
ect
edr
etu
rnf
ora
d
efi
nedl
evelo
fri
skorth
elowestr
is
kfo
rag
ive
nle
vel
ofe
xpec
tedr
etu
rn.

A
.Co
nca
ve

B
.Op
ti
mal

C.
Eff
i
cie
nt

D.
Opt
i
mal
&Co
nca
ve

A
NSWE
R:B

T
heeff
ic
ien
tFront
i
e ri
sa_______________c u
rvei
nth
eri
sk-
ret
urns
pac
eth
ate
xte
ndsf
romt
hemi
ni
mum
v
ari
anc
ep o
rtf
ol
iototh
emaxi
mumret
urnp
ort
f
oli
o.

A
.Co
nca
ve&Op
ti
mal

B
.Ef
f
ect
i
ve

C.
Con
cav
e

D.
Eff
i
cie
nt

A
NSWE
R:C

_______________r
is
kap
pli
eswh
eny
ouo
wnf
ore
igni
nve
stme
nts
.

A
.Cu
rre
ncy&E
qui
t
y

B
.Eq
uit
y&Cu
rre
ncy

C.
Equ
it
y
D.
Cur
ren
cy

A
NSWE
R:D

_______________ri
ski
sth
eri
sko
fbe
ingu
nab
let
ose
lly
ouri
nve
stme
nta
taf
ai
rpr
ic
ean
dge
tyo
ur
mon
eyoutwh
enyouwa
ntt
o.

A
.Li
qui
di
ty

B
.Di
ver
si
fi
cat
i
on

C.
Inv
est
men
t

D.
Por
tf
ol
io

A
NSWE
R:A